Bchusdt - Crypto Academy / S6T4- Team Trading Contest Post for Reminane

Hello guys, hope you're all good and ready for my analysis, my third for the week actually. Its been a good week and one of fun and knowledge for me. This time around I'll be talking about the popular Bitcoin fork, Bitcoin cash. I'll tell you all the basics you need to know as well as some technical knowledge that are vital for investing in this coin.

Bitcoin cash Bch, aka the Bitcoin fork, one of the most famous fork in the world of cryptocurrency was actually gotten from Bitcoin itself and was proposed to be an improvement on the coin but I think I hasn't lived to that expectations yet, infact it has undergone more forks too.

Hold on a sec, let me quickly explain something here. When I say fork, I do not mean the regular kitchen utensil you know but you can liken the term here to the purpose of the "utensil" version where its used to pick something, usually a meal, from a whole. What I'm saying in essence is that the Bitcoin cash was gotten from the Bitcoin.

Bch was developed in the year 2017 through a hard fork of Bitcoin. Ok lets delve deeper into the Bch history and see why there was actually a hard fork in the first place. Like, was there any issues with the most popular coin in the world?

Alright, at this point in time of history, you could be ridiculed for not knowing Bitcoin, at least you must have heard about it somehow, it's that popular. In early days of bitcoin's development it was intended to serve as a currency that could be used for everyday transactions and offered speed and cheapness when compared to other financial institutions, as well as decentralization and animosity. All these were a joy to the ears of the early investors and now much more joy to them especially with the current price as it became more popular.

Well thats where the problem came in, the popularity. Am i saying the popularity is a problem? Definitely not but hear me out for what I have to say. As Bitcoin became more and more mainstream, it faced more demands, more than what was actually planed for it in the first place. Take for instance the processing time, it seemed fast to the early investors but as the world got more advanced, 10 minutes in-between blocks was just too slow for some. Then there was the increase in price and fees. This made it no longer suitable for the "everyday use" that was initially proposed.

Some solutions to these problems were proposed, like the increasing of the block size ( which was at a max of just 1mb) to accommodate the surge of transactions or to simply cut out some transactions from the block. These were rejected by the Bitcoin team. After lots of considerations and actually forking a coin that was hacked, the Bitcoin cash came to life in the year 2017.

Bitcoin cash made its debut in the crypto world with a starting price of about $900, which was quite impressive and reached over $4000 in December of 2017. It was a success some deemed. It had improved on Many of the failures of Bitcoin itself. It had more processing speed as it could handle well over 20000 transactions at a time compared to just over 1000 transactions per second in Bitcoin.

Well for some it is and for others it isn't, depends on how you choose to look at it. But before investing in this coin there are certainly some considerations to be made and I'll point them out in this section.

Has it really improved on Bitcoin? Well the answer to thus question will be that it hasn't lived up to the promises it made. For a start the transaction fees it hoped to reduce, although it is high, bitcoin transaction fees have now been reduced drastically. Both of which are now competitors in the field of who wants to become an everyday currency.

In terms of popularity, its fair to say that this coin is not as popular outside the crypto world. In the crypto world, this was clearly one of the biggest news when it was forked from the Bitcoin, but outside the crypto world, Bitcoin is still its boss by a margin.

Talk about the value, Bitcoin easily dwarfs this competition by a mile. This single handedly make Bitcoin a viable competition for this bch and a more appealing investment option than Bch.

Governance. Well bch has no clear governance protocol in it and investors without substancial holdings of the coin would be unsure as to whether they have a say on the coins future. The system governance protocol now seems to be centralized around its team.

As a long term investment, I wouldn't opt for this coin unless it improves on the above issues at hand. Although I am open to do some little trades on the coin at the moment and reap the rewards of the little fluctuations in price.

In this section, I'll make some analysis of the coin's present state and make a real time trade based on this analysis. My analysis will be made on the popular and efficient trading view platform while the trade will be placed on the binance platform based on the analysis made.

From the image above, you'll see the chart of the bch/usdt pair and it has performed over q period of time with each candle representing an hour of market activity. You'll also notice that the market has been trading within a range which was marked with support and resistance lines.

Its currently headed to the resistance line after having bounced off the support line. If it will continue to go up and break that level is uncertain for now, so I simply placed a take profit order at the rip of the resistance line to be safe. While I placed a stop loss order just below the 14 periods moving average.

There were also other indicators on the screen that proved that the market was surely in an upward move. The moving average showed this when the market traded above it while the Rsi also confirmed this as it was above the 50 mark.

Well this coin promised to be an improvement on the shortcomings of Bitcoin and so far so good it has only flattered to deceive to me. I still think there are lots of information to be made here and theres still lot of time for that.

On the other hand, its still a good coin that has potential for greatness and is still a valid competition for the great Bitcoin. It'll be interesting to see the outcome of this coin in the near future.